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BEEF'S COW CALF WEEKLY    July 1, 2009  |  A PENTON MEDIA PUBLICATION
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What's new on BEEF?
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- What's Up (Down) with the Cull Cow Market?
- USDA Announces $6.45 Million in Rural Grants
- Oil, Gasoline Tumble as World Bank Predicts a Deeper Recession
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    Table Of Contents
> Europe, Australia Are Debunking The Warming Hype
> I'm Inclined To Refuse The Advice Of The Experts
> Now, We’ve Just Got to Get The Crop In The Bin
> Maybe We Could Use A Little Humble Pie In Our Diet
> CRP Grazing Takes Careful Management
> Calls To Curb Meat Consumption Increasing
> Climate Bill Passes House; Heads To Senate
> Don’t Forget The Horses
> Fever Tick Update
> Getting Ready For A South Dakota Farm Sale
> Manure Study Released
> Master Cattleman Summit Is Aug. 13-14
> Noble Foundation To Look At Key Stocker Issues
> Pfizer Animal Genetics Adds Osteopetrosis Test
> Soybean Acres At Record High
> U.S. Average Gasoline, Diesel Prices Finally Fall
> USDA Corn Outlook Sinks Contract Prices
> World Mobilizes To Fight FMD Globally

    To Our Readers
     

Here's an early Independence Day edition of CowCalf Weekly.
-- BEEF Staff



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    Our Perspective
    Europe, Australia Are Debunking The Warming Hype

The U.S. has long been seen as a big part of the problem as it relates to global warming. The U.S. failure to sign the Kyoto Protocol agreement was viewed in some quarters as an example of the U.S. not living up to its responsibility in combating global warming and greenhouse gas emissions. The thinking was that the other developed countries were taking the lead while the U.S. just sat on the sidelines.
-- Click on headline to read the rest of this story by Troy Marshall

      I'm Inclined To Refuse The Advice Of The Experts

Last week's Colorado Livestock Association Convention had an impressive group of speakers who presented a tremendous amount of information. They talked about the attacks on modern agriculture and especially livestock production from the animal welfare and environmental movements, the seismic shift in the regulatory environment, the attack on the free-market system, the fragility of the global economy, and policy decisions that should lead to increased inflation, higher interest rates, reduced value of the dollar, higher costs, higher taxes, etc.

I'm not disagreeing that the fuse may have already been lit, and in some cases, might be pretty short. Nor am I saying that they’re wrong about the political environment, or that the economists have reached the wrong conclusions.

I certainly took heart, as well as copious notes, regarding their suggestions on how to be prepared for this new environment. I'm just not convinced that the road we’ve embarked on is as inevitable as is assumed.

Even the proponents of these changes talk about fewer jobs, bigger government, more taxes, reduced standards of living and harder choices. But my generation was the one that had to move to two-family incomes to improve on the lifestyle of the one-income families we grew up in. The price was high in a lot of areas, but, as a whole, we weren’t willing to accept that we were going to have less than our parents.

I do believe in balance. Perhaps a smaller home, or a smaller car to run to town in isn’t all bad. Maybe we’ll all be happier working fewer hours for fewer dollars. And perhaps walks in the park with the kids and ice cream cones will supplant trips to Disneyworld.

I just don’t believe that is the type of solution and future that the American people will buy into long-term.
-- Troy Marshall

      Now, We’ve Just Got to Get The Crop In The Bin

In our area, the wheat has never looked better, and every cloud has farmers nervous knowing that a record crop is just a few weeks away – barring hail or something else Mother Nature can devise.

This week, USDA announced record soybean acres, as well as corn acreage that exceeded expectations. The old saw about “rain makes grain” has a lot of truth to it, and the early indicators are that we could have some real bin-busting grain harvests this year. Meanwhile, hay production is shaping up to far exceed anything in the last several years.

Of course, farmers will tell you that nothing counts until it is actually harvested, and we still have a long way to go. But, feed supply expectations and grass conditions are well ahead of projections, and with reduced cow and swine numbers, supplies should be sufficient.

Admittedly, there isn’t a lot of reserve, and it’s been such an extended period of time since feed buyers had any leverage that it may take us a little longer than normal to see price adjustments, especially on the hay side.
-- Troy Marshall



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      Maybe We Could Use A Little Humble Pie In Our Diet

I'm guilty. Statements like: “the U.S. has the safest, most abundant and most wholesome food supply in the world” roll off of my tongue without a second thought. And, most of the time, I’ll throw in the little tidbit about how U.S. consumers spend less of their income on food than anyone else, thus allowing U.S. agriculture to indirectly subsidize every other industry in America.

Then you read a scientific report that ranks the U.S. as 7th out 17 industrialized countries for food safety and you’re forced to momentarily pause. Maybe Russia, South Korea, Japan and Europe are more correct in their assessments than we'd like to believe. Or maybe the fact that we make more, and eat differently than other countries, convolutes the whole food price, income level kind of number.

It’s always a matter of perspective. Relative to most of the other industrialized countries, it’s probably safe to say that to Americans in general, eating is more often than not a necessary evil rather than a significant event in the course of a day. Perhaps a lower percentage of our income being spent for food is more reflective of a low-margin commodity mindset in agriculture than it is efficiency.

Don't get me wrong. I’d put American agriculture, efficiency, genetics and adoption of technology up against just about anyone's. Still, it would probably be productive to understand that some of the advantages we claim are a little harder to justify empirically.
-- Troy Marshall

   
    CRP Grazing Takes Careful Management

Many Conservation Reserve Program (CRP) participants find themselves facing some tough decisions after being notified their contracts will not be renewed, according to Ted McCollum, Texas AgriLife Extension beef cattle specialist.
-- Click on headline to read the rest of this release by Texas AgriLife Extension

      Calls To Curb Meat Consumption Increasing

The World Wildlife Federation (WWF) is suggesting to Europe that red meat packaging carry labels advising people to consume no more than three portions a week, and dairy products no more than three a day. This comes on the heels of:
  • A Meat Free Mondays campaign supported by celebrities like Paul McCartney that was launched in the United Kingdom earlier this month.
  • In the Belgian city of Ghent, officials are also encouraging institutions and the general public to go meat-free one day a week.
  • In Sweden, food and environment officials are seeking feedback on a set of food guidelines that take environmental considerations into account as well as health and nutrition.
But the latest WWF proposal would send a direct message to consumers at time of purchase that the pack of meat they are buying represents “1 of 3 a week max.” It also calls for greater promotion of meat substitutes like soy or rice; and suggests food manufacturers should reduce the amount of meat used in composite foods like ready meals, reports FoodNavigator.com.

Charlotte Lee-Wolf, one of the authors of the WWF report, told The Grocer newspaper that at a population level the UK is eating 70% more meat than it should, and 40% more dairy.

Philip Hambling of the British Meat Processors Association told FoodNavigator.com: “Our view on this issue is that all food production and consumption has a complex ‘footprint’ and that the food industry, like every other responsible industry, needs to play its part in lightening its footprint wherever possible.

“We should also bear in mind that food, including livestock and meat production, has important environmental, social and economic benefits too.”

He pointed at projects already underway to reduce the environmental impact of meat production, including a product “roadmap” that is being developed for the whole meat supply chain that will build on developments in reducing energy and water consumption and waste reduction and set medium- and long-term targets.
-- FoodNavigator.com

    Climate Bill Passes House; Heads To Senate

The House of Representatives passed cap and trade legislation by a narrow margin last Friday, 219 to 212, with more than 40 Democrats voting with Republicans against the measure. Meanwhile, eight Republicans crossed the aisle to vote for the 1,300-page bill, called the American Clean Energy and Security Act of 2009, which now heads to the Senate where another close vote is expected.
-- Click on headline to read the rest of this article by Media reports

      Don’t Forget The Horses

Horses are an important part of many cattle operations, and just as preventive measures are important for the cattle’s health, horses need to be vaccinated too, says Larry Hollis, Kansas State University Extension veterinarian.

“Rabies, tetanus, western and eastern equine encephalomyelitis and West Nile virus are the four core vaccines recommended for all horses,” he says.

The rabies vaccine is recommended because people commonly put their hands in horses’ mouths when putting on a bit and headstall. The horse owner could be exposed and not realize their horse had rabies if it later dies and the brain isn’t tested for the disease, Hollis says.
-- K-State release

      Fever Tick Update

As of May 28, there were 161 premises in South Texas under quarantine due to tick infestation, according to Bob Hillman, Texas state vet and executive director of the Texas Animal Health Commission (TAHC). That includes 65 premises in the permanent fever tick quarantine zone that runs across eight counties along the Rio Grande from Del Rio to Brownsville. Another 96 infested premises are in the free area or in the temporary quarantine zones that were created to stop movement of fever ticks further into the state.

From Oct. 1, 2008 (the beginning of the federal fiscal year) through May 28, 2009, there have been 121 newly infested premises detected. A newly infested premise is detected at the rate of one every other day. With four months left in the federal fiscal year, this year's number may eclipse the 132 newly detected infested premises counted in 2008.

There is some good news, however, Hillman says. On April 16, more than 375,000 acres were released from temporary preventive fever tick quarantine in Maverick, Dimmit and Webb counties. "We applaud the efforts of cattle and wildlife producers who worked diligently with the Tick Force to accomplish this effort," he noted.

For more on the fever tick issue, go to beefmagazine.com/health/long_thin_line/index.html
-- Texas Cattle Feeders Association Newsletter

    Getting Ready For A South Dakota Farm Sale

We buried my father-in-law in early May. Bob Young, a lifelong rancher from Kimball, SD, took over the ranch from his father who acquired it from the original homesteader. Through the years, Bob farmed and raised livestock. Cattle were his first love and he operated cow-calf and stocker enterprises until a few years ago.
-- Click on headline to read the rest of this story by Joe Roybal

      Manure Study Released

It’s a conundrum that every confined feeding operation has to deal with – what to do with stockpiled manure. USDA, under direction from the Food, Conservation and Energy Act of 2008, has evaluated the role that manure plays as a fertilizer and energy source.

About 5% of all U.S. cropland is currently fertilized with livestock manure and corn acres account for more than half of the land to which manure is applied. Expanded environmental regulations will likely lead to wider use of manure as an organic fertilizer. While this will raise production costs for livestock operations, especially those that must haul the manure any distance, the overall impact on production costs, commodity demand or farm structure will be limited.

While the report notes there is widespread interest in using manure as an energy source, current use is very limited. That may change with expanded government support, but the amount of manure used to produce methane or electricity won’t be sufficient to compete with manure supplies used as fertilizer because manure nutrients can be left behind as residue in a more marketable form and manure-to-energy projects will be most profitable in regions where manure is in excess supply.

Read the report at: www.ers.usda.gov/Publications/AP/AP037/.
-- USDA Economic Research Service

      Master Cattleman Summit Is Aug. 13-14

The Master Cattleman Summit is set for Aug. 13-14 on the Oklahoma State University (OSU) campus. “Hand-on” activities at the Animal Science Building and at OSU’s Range Cow Research Center will focus on forage production and availability, determining appropriate stocking rates, forage management, risk management and minimizing input costs.

Chip Ramsey, AgReserves, Inc., will be a featured speaker, discussing keys to profitability on the extensive cow-calf operations he manages. Todd Thrift, University of Florida beef specialist, will address simple crossbreeding systems to maximize profitability of commercial beef cow enterprises. A number of concurrent sessions are also planned.

Registration, which is $30/person, is limited to 180 registrants. Register at orangehub.okstate.edu. Additional info can be obtained by calling 405-744-6489.
-- Dave Lalman, OSU Beef Nutritionist

      Noble Foundation To Look At Key Stocker Issues

The Samuel Roberts Noble Foundation's Ag Division will host a free Stocker Cattle Seminar July 14, from 2-5:30 p.m., at the Kruse Auditorium on the Noble Foundation’s Ardmore campus. Noble Foundation consultants will highlight forage system options, stocker cattle nutrition and health, and stocker breakevens and value of gain.

“This seminar has been designed to address the key issues that ultimately affect profitability for producers,” says Deke Alkire, Noble Foundation livestock consultant. Call Tracy Cumbie at 580-224-6411 for more info, or register online at www.noble.org/agevents.
-- Noble Foundation

      Pfizer Animal Genetics Adds Osteopetrosis Test

Pfizer Animal Genetics now offers a diagnostic test for the genetic defect Osteopetrosis (OS), or Marble Bone Disease. Additionally, Pfizer Animal Genetics has been approved by the Red Angus Association of America (RAAA) as an OS testing lab.

The gene mutation responsible for OS has been identified and a diagnostic test developed and validated in collaboration with Jon Beever at the University of Illinois and the following organizations: University of Nebraska-Lincoln, University of Wyoming, University of Maryland, USDA Meat Animal Research Center, USDA Beltsville Agricultural Research Center and RAAA.

A lethal genetic defect, OS influences Red Angus cattle. Affected calves are most often stillborn 10-30 days premature, while those born alive live less than 24 hours and have a short lower jaw and impacted molars. The long bones on the affected calves are fragile and can be broken with ease. The gene is inherited as a simple recessive.

Visit www.pfizeranimalgenetics.com for more info, or call 1-877-BEEF DNA (1-877-233-3362). For a list of list of OS-tested animals, go to: redangus.org/node/215.
-- Pfizer Animal Genetics release

      Soybean Acres At Record High

U.S. farmers planted a record-breaking soybean crop this spring, according to USDA’s June 30 Planted Acreage report. Estimated soybean acres are up 2% from last year, while corn acres are up 1%, and cotton acres are down 4%.

Soybean planted area for 2009 is estimated at a record-high 77.5 million acres. Area for harvest, at 76.5 million acres, is up 3% from 2008, and will be the largest harvested area on record, if realized.

Compared with last year, planted acreage increased by 200,000 acres or more in Kansas, Mississippi, Missouri, North Dakota and South Dakota. The largest decrease is in Nebraska, down 400,000 acres from 2008, which went into corn this year. Record-high planted acreage is estimated in Kansas, New York, North Dakota and Pennsylvania.

Corn planted area is estimated at 87 million acres, up 1% from last year but 7% below 2007. This is the second-largest planted acreage since 1946, behind 2007.

On May 10, corn planting was 48% complete, down 23 points from the five-year average. By late May, however, drier conditions allowed farmers to report 97% of the intended corn acreage as planted compared with the 10-year average of 98%.

Meanwhile, all wheat planted area is estimated at 59.8 million acres, down 5% from 2008. The 2009 winter wheat planted area, at 43.4 million acres, is 6% below last year but up 1% from the previous estimate. Of this total, about 31.4 million acres are hard red winter, 8.4 million acres are soft red winter, and 3.6 million acres are white winter. Area planted to other spring wheat for 2009 is estimated at 13.8 million acres, down 3% from 2008. Of this total, about 13.1 million acres are hard red spring wheat. Durum planted area for 2009 is estimated at 2.56 million acres, down 6% from the previous year.
-- Elton Robinson, Farm Press

      U.S. Average Gasoline, Diesel Prices Finally Fall

Reversing the trend of the previous eight weeks, the U.S. average price for regular gasoline fell 5¢ to $2.64/gal. (week ending June 29), or $1.45 below last year. Meanwhile, diesel was down for the first time since May 4, shedding 1¢ to $2.61/gal., $2.04 below the price a year ago.

The largest drop for gasoline occurred in the Midwest – 9¢ to $2.57. The East Coast was at $2.63, the Gulf Coast $2.52, the Rocky Mountains $2.60, and the West Coast $2.91. California fell 2¢ to $2.98.

Meanwhile, diesel was down in all regions but the Rocky Mountains, which gained 2¢ to $2.63/gal. Otherwise, the East Coast and Midwest were at $2.63 and $2.58, respectively; the Rocky Mountains at $2.63, and the Gulf Coast at $2.57. The West Coast shed 1¢ to $2.71, and California stayed even at $2.79.
-- U.S. Energy Information Administration

      USDA Corn Outlook Sinks Contract Prices

USDA shocked the commodity markets with the release on Tuesday morning of its Acreage and Quarterly Stocks reports. Corn acres came in at just over 87 million acres, a 2-million-acre jump from March 31 expectations. With the trade anticipating a 1-million-acre decline from the March report, 3 million more acres than expected was bearish for the corn market, says Dillon Feuz, Utah State University economist.

Upon morning release, trading at midday plunged many of the corn contracts down the limit of 30¢/bu., Feuz writes for the Livestock Marketing Information Center’s June 30 In The Cattle Markets. Quarterly stocks of corn were also higher than expected, coming in at 4.266 billion bu., on an expectation of just under 4.2 billion bu. Meanwhile, this year's planted acres are 1 million more than last year; with over 70% of the crop rated Good to Excellent, it will likely be the second-largest corn crop ever.

“While the report will not be good for corn prices, it should strengthen the cattle markets,” Feuz says. “Feedlots may actually be able to buy corn this year at a price that will allow for some profitability in cattle feeding.”

Feuz says early video sales for fall-delivered calves and yearlings have been lackluster so far this year, and this report may also add a little enthusiasm to the feeder market. But he expects feedlots to remain cautious after losses the last three years with early summer forward contracts being much higher than fall calf prices.
-- Dillon Feuz, Livestock Marketing Information Center

      World Mobilizes To Fight FMD Globally

Paraguay hosted a global conference to eradicate foot and mouth disease (FMD) worldwide. Representatives from more than 100 countries were on hand to hear that the World Bank and the European Union will provide funds to help eradicate the disease in poor countries.

Bernard Vallat, director general of the World Health Organization, said the meeting signified the first time that "a conference has been organized to tackle the problem and ensure a global commitment to control FMD worldwide."

During the three-day conference, the current situation of FMD in the world was assessed with specific reference to international, regional and national FMD-control efforts. The updated control methods of the disease, status of research on FMD, the application of disease surveillance methodologies; the application of and development of vaccines and the use, constraints and availability of diagnostic methods in susceptible species will all be assessed and evaluated against future needs and constraints.

Meanwhile, the U.N. Food and Agriculture Organization (FAO) estimates Venezuela will be a country free of FMD in 2012, reports Francisco Arias, the Venezuelan representative in the agency.

Arias says the Ministry of Agriculture and Lands has signed an agreement with FAO to make formal the entry of Venezuela to the Project for Strengthening Policies and Strategies to prevent, control and eradicate the foot and mouth disease, which includes Peru, Bolivia, Ecuador and Colombia.

"The project is aimed at strengthening the policies and strategies to prevent, control and eradicate foot and mouth disease. It is implemented, together with other Andean countries, to create a security belt in the region, i.e., to build capacity to avert FMD outbreaks and establish FMD-free areas," he says.
-- El Universal

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